**Kilbourne Appliances Production and Costs Analysis** Kilbourne Appliances manufactures two models of beverage coolers for homes and offices: KA-15 and KA-24. The operational data and associated costs for March are as follows: | | KA-15 | KA-24 | Total | |--------------------------|--------|--------|--------| | Units produced | 600 | 400 | 1,000 | | Machine-hours | 360 | 540 | 900 | | Direct labor-hours | 750 | 1,750 | 2,500 | | Direct materials costs | $82,000| $130,000| $212,000| | Direct labor costs | $16,500| $38,500| $55,000 | | Manufacturing overhead costs | | | $206,700| | **Total costs** | | | **$473,700**| **Required Tasks:** a. **Compute Product Costs per Unit Using Units for Overhead Allocation:** Calculate costs per unit assuming overhead is allocated based on the number of units produced. b. **Compute Product Costs per Unit Using Direct Labor Cost:** Calculate costs per unit assuming overhead is allocated based on direct labor costs. c. **Compute Product Costs per Unit Using Direct Material Costs:** Calculate costs per unit assuming overhead is allocated based on direct materials costs. **Instructions:** - Compute the individual product costs per unit assuming Kilbourne Appliances uses the number of units to allocate overhead. - **Note:** Do not round intermediate calculations. Round final answers to two decimal places. | | KA-15 | KA-24 | |--------------------------|--------|--------| | Product costs per unit | | |
**Kilbourne Appliances Production and Costs Analysis** Kilbourne Appliances manufactures two models of beverage coolers for homes and offices: KA-15 and KA-24. The operational data and associated costs for March are as follows: | | KA-15 | KA-24 | Total | |--------------------------|--------|--------|--------| | Units produced | 600 | 400 | 1,000 | | Machine-hours | 360 | 540 | 900 | | Direct labor-hours | 750 | 1,750 | 2,500 | | Direct materials costs | $82,000| $130,000| $212,000| | Direct labor costs | $16,500| $38,500| $55,000 | | Manufacturing overhead costs | | | $206,700| | **Total costs** | | | **$473,700**| **Required Tasks:** a. **Compute Product Costs per Unit Using Units for Overhead Allocation:** Calculate costs per unit assuming overhead is allocated based on the number of units produced. b. **Compute Product Costs per Unit Using Direct Labor Cost:** Calculate costs per unit assuming overhead is allocated based on direct labor costs. c. **Compute Product Costs per Unit Using Direct Material Costs:** Calculate costs per unit assuming overhead is allocated based on direct materials costs. **Instructions:** - Compute the individual product costs per unit assuming Kilbourne Appliances uses the number of units to allocate overhead. - **Note:** Do not round intermediate calculations. Round final answers to two decimal places. | | KA-15 | KA-24 | |--------------------------|--------|--------| | Product costs per unit | | |
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:**Kilbourne Appliances Production and Costs Analysis**
Kilbourne Appliances manufactures two models of beverage coolers for homes and offices: KA-15 and KA-24. The operational data and associated costs for March are as follows:
| | KA-15 | KA-24 | Total |
|--------------------------|--------|--------|--------|
| Units produced | 600 | 400 | 1,000 |
| Machine-hours | 360 | 540 | 900 |
| Direct labor-hours | 750 | 1,750 | 2,500 |
| Direct materials costs | $82,000| $130,000| $212,000|
| Direct labor costs | $16,500| $38,500| $55,000 |
| Manufacturing overhead costs | | | $206,700|
| **Total costs** | | | **$473,700**|
**Required Tasks:**
a. **Compute Product Costs per Unit Using Units for Overhead Allocation:** Calculate costs per unit assuming overhead is allocated based on the number of units produced.
b. **Compute Product Costs per Unit Using Direct Labor Cost:** Calculate costs per unit assuming overhead is allocated based on direct labor costs.
c. **Compute Product Costs per Unit Using Direct Material Costs:** Calculate costs per unit assuming overhead is allocated based on direct materials costs.
**Instructions:**
- Compute the individual product costs per unit assuming Kilbourne Appliances uses the number of units to allocate overhead.
- **Note:** Do not round intermediate calculations. Round final answers to two decimal places.
| | KA-15 | KA-24 |
|--------------------------|--------|--------|
| Product costs per unit | | |
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